Australian Small & Mid Cap Equity Funds are investment funds focused on stocks of smaller companies listed on the Australian Stock Exchange.
This segment of the equity market offers investors opportunities for capital growth, often with higher potential returns than larger cap stocks, while also coming with distinct risks.
Australian Small & Mid Cap Equity Funds primarily invest in companies with smaller market capitalizations—typically classified as those with a market capitalization under $3 billion (small cap) and between $3 billion and $10 billion (mid cap).
These funds aim to capture the upside potential of smaller companies that may not be as widely followed as large caps, often leading to opportunities for higher growth.
There are two main types of Australian Small & Mid Cap Equity Funds:
There are two main features of Australian Small & Mid Cap Equity Funds:
There are three main risks of investing in Australian Small & Mid Cap Equity Funds:
When comparing these funds, investors should consider the following factors:
Investors can gain exposure to Australian Small & Mid Cap Equity Funds through:
A small-cap stock typically has a market capitalisation of under $3 billion.
A mid-cap stock generally falls between $3 billion and $10 billion in market capitalisation.
Small & Mid Cap Equity Funds are generally better suited to risk-tolerant investors looking for higher growth asset classes.
Capital gains generation can lead to tax liabilities and income tax is payable on fund distributions, varying by individual circumstances.
Investors can generally redeem their units by following the fund's specific withdrawal process which can take time.
Yes, due to market volatility and fund performance risks.
It is advisable to assess your portfolio at least annually, or more frequently if market conditions change.
This varies by fund. Some funds may have minimum initial investments ranging from $1,000 to $5,000.
Australian Small & Mid Cap Equity Funds represent a distinctive investment opportunity with the potential for significant capital growth. This asset class presents both unique benefits and risks.
By understanding the types of Australian Small & Mid Cap Equity Funds available and how to evaluate them, investors can make informed decisions that align their portfolios with their risk tolerance and investment objectives.
Centennial's Level 18 Fund has been designed to deliver consistent capital growth through investments in Australian small-cap listed companies. (For Wholesale Investors Only)
The Fund’s objective is to outperform the Small Ordinaries Accumulation Index by focusing on listed shares of smaller companies in Australia and New Zealand.
The Fund aims to deliver long-term growth by investing in 30 to 50 high-quality, small, emerging and developing Australian and NZ companies with strong and enduring growth potential.
The Merewether Capital Inception Fund invests in small and microcap companies listed on the ASX, with the ability to invest in pre-IPO opportunities. (For Wholesale Investors only)
Through Invesco’s proprietary investment model, the Fund seeks to unlock persistent long-term excess returns by investing in smaller companies listed on the Australian share market, predominantly outside the S&P/ASX 100 Index.
The Fund is a long only, small cap Australian equities fund that typically invests in 20 – 40 companies. The objective of the Fund is to provide strong absolute returns, while also outperforming its S&P/ASX Small Ordinaries Accumulation Index.
The Fund seeks to achieve superior total returns by providing medium to long term capital growth investing in smaller capitalisation companies.
The fund is a diversified portfolio of Australian equities across a range of impact focus areas that seeks to demonstrate a financial return along with measurable positive impacts on society and the environment.
NuStar Global Diamonds is a small cap absolute return fund that seeks to provide alpha in all market conditions. (For Wholesale Investors Only)
The Monash Investors Small Companies Fund offers investors an Australian equity fund with a long bias and an Absolute Return focus.
The Fund's objective is to earn long term returns superior to that of our competitors with less-than-average risk of loss. (For Wholesale Investors Only)
A long only small-cap fund targeting future-facing emerging companies on the ASX.
The fund invests in companies and trusts listed, or soon to be listed, on the Australian Stock Exchange that offer an opportunity for above-average returns through their growth potential.
The Fund objective is to outperform the S&P/ASX Small Ordinaries Accumulation Index by 3.0% p.a. after fees on a rolling 5-year basis.
The Fund aims to provide a total return (both income and capital growth), after fees and costs, that exceeds the S&P/ASX Emerging Companies Accumulation Index over the medium to long term (For Wholesale Investors Only).
